Oyo expands Sunday brand through conversion of six Mercure hotels

Oyo has signed leases to operate six former Mercure hotels in the UK under its Sunday brand.

Oyo’s parent company, Oravel Stays, has added Mercure Cardiff Holland House, Mercure Walton Hall in Warwick, Mercure Box Hill Burford Bridge in Dorking, Mercure London Staines, Mercure Exeter Rougemont hotel and Mercure Winchester Wessex to its portfolio.

The UK’s first Sunday hotel – Sunday Lansbury Heritage – opened in London’s Canary Wharf in September 2024, a year after the brand’s official launch.

Oyo also operates its Sunday hotels, which are marketed as a more premium stay, across Indonesia, Malaysia, Thailand, UAE, Bahrain and Saudi Arabia.

Puneet Yadav, head of Oravel’s UK business, said: “We have focused on diversifying our premium offerings in the UK market. These hotels, each with their own unique character and strong market presence, will allow us to serve both business and leisure travellers, corporate groups, weddings and conferences.”

The expansion comes after Oyo posted a 15% year-on-year increase in revenue in 2024.

Oyo first entered the UK market in 2018 with aims to develop more than 5,000 rooms within 18 months of launching. It currently has in excess of 150 hotels in 65 UK cities.

In 2019, Airbnb took a stake in Oyo, with reports suggesting it had invested more than £76m.

Last year, Oyo also announced plans to bring its luxury holiday home rental brand Belvilla into the UK.